Auction VS Private Treaty – What Method of Sale Suits You?

As a vendor, knowing the routes that you can take to get your property sold, is very important, as it can assist in getting you a price that you’re comfortable with, in a suitable time frame and with terms that satisfy both you and your buyer. At Tutis Estates, we not only sell properties in Coventry by private treaty, but we have recently launched Tutis Auctions, a faster, more secure way of selling your home. In this week’s article, we provide a breakdown on the key differences between these two methods of sale, so you can make an informed decision regarding your property.

Private Treaty

1 - There is a set sale price that has been agreed by the vendor. This price will vary in negotiations, as your agent works to secure an offer around or above the marketed figure.

2 - Private treaty has no fixed time period to conclude sale if there is no chain, but if there is, the sale should reach completion in line with the seller’s deadlines.

3 - To market the property, you may have to pay a specific fee, alongside the fee of 1 – 3.5% of the sale price, that agencies charge for their services.

4 - The buyer has the option of a cooling off period, during which they can change or withdraw their offer.

5 - With no reservation fee required, the buyer has no financial commitment and can exit the sale without penalty.

Tutis Auctions

1 - There is a guide price set for prospective buyers to bid from, though the property cannot sell for any less than the reserve price. If the highest offer does not meet this number, then further negotiations are held to encourage them increasing their offer.

2 - All sales must be completed within a fixed time frame of 56 days.

3 - With Tutis Auctions, agency profit is made from the buyer, so no fees are charged to the vendor, and they receive the total of the sale price.

4 - There is no cooling off period, encouraging a speedy sale, and deterring people from removing their offer.

5 - A non-refundable reservation fee, starting from around £7000, is to be paid upon acceptance of the offer, reducing the likelihood of the sale falling through.

Both methods of sale are effective and efficient, but one might be more suited to your personal situation and needs. If speed is a priority for you, auctioning your Coventry home could be a more accommodative route, that allows you to get your property sold in under 2 months. But if you are wanting more control over the sales process or needing the extra time that a private treaty often offers, then that may be the path for you. To ensure that you are confident with your eventual decision, speak with your agent to discuss which route can address your wants and needs.

At Tutis Estates, we help Coventry landlords #sellforfree via Tutis Auctions, and you can learn more about the process here.

Maya